In an exclusive interview with the South China Morning Post, Antony Chen, the founder of Protostar Education, shared his thoughts on the Hong Kong government's latest 2024 Policy Address, focusing on the key challenges facing the education sector and small and medium-sized enterprises (SMEs). Chen's insights were informed by his experience leading an education company during a time of rapid Chenge, as well as his close engagement with the SME community in Hong Kong.
With Hong Kong facing a declining birth rate and a reduction in the number of students enrolling in primary and secondary schools, the government has introduced several measures to attract more immigrant students, including the children of talented professionals relocating to the city, as well as international students coming directly to Hong Kong for education. Chen acknowledged that these initiatives are a positive step, but he believes further refinement is necessary to fully realize their potential.
Drawing from his experience in helping newly arrived students transition to life in Hong Kong, Chen highlighted the significant gap between these students' previous educational environments and the new challenges they face—particularly when it comes to language preparation. The government has already introduced specific funding aimed at assisting newly arrived students to better integrate into local schools, but the key issue, according to Chen, is that many school principals are unaware of how to best utilize these resources.
“While the funding exists and is designed to support these students, the lack of awareness and understanding of how to effectively apply it is a major barrier,” Chen explained. “Schools need more guidance and support to fully leverage this funding and ensure that students receive the help they need.”
“Many school principals are either unaware of the funding or unclear about how to effectively use it to support their students,” Chen explained during the interview. “The funding is there to help, but if schools don’t know what’s available or how to allocate these resources, the impact is diminished.”
Chen suggests that the government needs to do more than just provide the funds; it should also actively promote awareness of the funding and provide clear guidelines on how it can be used. This could include workshops or informational sessions for school administrators to ensure they are equipped to maximize the benefits for their students. Furthermore, Chen advocates for a more structured partnership between schools and professional service providers—particularly small and medium-sized enterprises (SMEs) specializing in education services.
“There’s a real opportunity here for the government to facilitate better resource matching between schools and professional service providers. SMEs in education, particularly those focusing on language adaptation and student support, could play a pivotal role in helping newly arrived students transition smoothly into the local school system,” Chen added. “Such partnerships would not only enhance the efficacy of the funding but also contribute to the local economy by stimulating demand for services provided by SMEs.”
In addition, he emphasized that better utilization of funding for new immigrants would underscore Hong Kong’s position as a global city, making it more attractive to incoming talent and their families by demonstrating a robust support system for their children’s education.
When discussing the broader economic measures outlined in the 2024 Policy Address, Chen welcomed the government’s focus on bolstering support for SMEs through initiatives such as the BUD (Branding, Upgrading, and Domestic Sales) Fund. However, he pointed out that while these funds are essential for promoting innovation, growth, and competitiveness, the application and approval processes remain cumbersome.
“Financial support from the government is undoubtedly critical for SMEs, especially during a time when businesses are recovering from economic challenges,” Chen said. “Initiatives like the BUD and EMF Fund are designed to help businesses scale up and explore new markets, but the bureaucratic hurdles involved can often discourage smaller enterprises from applying.”
Chen suggests that the government should prioritize streamlining these processes to make funding more accessible to SMEs. This could involve simplifying application procedures, reducing paperwork, and shortening approval timelines. He believes that quicker access to funding would allow businesses to take advantage of market opportunities in a timelier manner.
“SMEs often lack the administrative resources to navigate complex application processes, so making these funds more accessible would go a long way in empowering them to grow,” Chen emphasized. “An efficient funding process not only benefits SMEs but also enhances the overall economic landscape by encouraging more businesses to innovate and expand.”
Chen also proposed that the government should consider offering more hands-on support in the form of mentorship or consultancy services, which would guide SMEs through the process of applying for and utilizing government grants. This would ensure that businesses not only receive the funding but also implement it in ways that lead to tangible growth.
One of the major challenges SMEs in Hong Kong face is the rising cost of labour, which Chen identifies as one of the most significant barriers to growth and competitiveness. Reducing wages in such a competitive market is neither realistic nor desirable, as it would have severe consequences for the economy. However, even within this context, Chen believes there are ways the government can help SMEs alleviate the financial burden they face.
“While wages themselves are high, and lowering them is not a viable option, the government could explore other ways to support businesses,” Chen explained. “For example, offering subsidies or covering a portion of the contributions for Mandatory Provident Fund (MPF), labour insurance, and medical insurance would significantly help reduce the financial strain on SMEs.”
He further highlighted that reducing the financial burden of labour costs would have a direct impact on improving the competitiveness of Hong Kong-based businesses, especially in industries where profit margins are thin. “When SMEs have more flexibility to hire and retain talent, they can innovate more effectively and improve the quality of their products and services,” Chen noted. “This, in turn, would make Hong Kong a more attractive place for business, ultimately benefiting the city’s economy.”
By targeting these specific costs rather than wage reductions, Chen believes the government can strike a balance between maintaining Hong Kong’s economic competitiveness and supporting the growth and sustainability of small businesses.
In his interview with the South China Morning Post, Chen offered a holistic view of the current policy measures, praising the government’s forward-looking initiatives while calling for more actionable and accessible improvements. From improving the utilization of funding in schools to streamlining government financial support for SMEs and addressing the high cost of labour, Chen’s suggestions highlight the need for practical, business-friendly reforms that align with the government’s broader economic and social goals.
“As we move forward, these refinements could help Hong Kong not only maintain its reputation as a global hub but also ensure that businesses and students alike have the resources and support they need to thrive,” Chen concluded.